Correlation Between Jointo Energy and Datang HuaYin
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By analyzing existing cross correlation between Jointo Energy Investment and Datang HuaYin Electric, you can compare the effects of market volatilities on Jointo Energy and Datang HuaYin and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Jointo Energy with a short position of Datang HuaYin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jointo Energy and Datang HuaYin.
Diversification Opportunities for Jointo Energy and Datang HuaYin
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jointo and Datang is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Jointo Energy Investment and Datang HuaYin Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datang HuaYin Electric and Jointo Energy is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Jointo Energy Investment are associated (or correlated) with Datang HuaYin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datang HuaYin Electric has no effect on the direction of Jointo Energy i.e., Jointo Energy and Datang HuaYin go up and down completely randomly.
Pair Corralation between Jointo Energy and Datang HuaYin
Assuming the 90 days trading horizon Jointo Energy Investment is expected to generate 0.95 times more return on investment than Datang HuaYin. However, Jointo Energy Investment is 1.05 times less risky than Datang HuaYin. It trades about 0.1 of its potential returns per unit of risk. Datang HuaYin Electric is currently generating about 0.06 per unit of risk. If you would invest 533.00 in Jointo Energy Investment on September 14, 2024 and sell it today you would earn a total of 20.00 from holding Jointo Energy Investment or generate 3.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jointo Energy Investment vs. Datang HuaYin Electric
Performance |
| Timeline |
| Jointo Energy Investment |
| Datang HuaYin Electric |
Jointo Energy and Datang HuaYin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jointo Energy and Datang HuaYin
The main advantage of trading using opposite Jointo Energy and Datang HuaYin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jointo Energy position performs unexpectedly, Datang HuaYin can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Datang HuaYin will offset losses from the drop in Datang HuaYin's long position.| Jointo Energy vs. Changjiang Jinggong Steel | Jointo Energy vs. Guangdong Qunxing Toys | Jointo Energy vs. Hubei Geoway Investment | Jointo Energy vs. Shenzhen MYS Environmental |
| Datang HuaYin vs. Industrial and Commercial | Datang HuaYin vs. China Construction Bank | Datang HuaYin vs. Agricultural Bank of | Datang HuaYin vs. Bank of China |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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